The surpassing of the $100,000 milestone by Bitcoin [BTC] has sparked a worldwide frenzy, attracting various investors, institutions, and even governmental bodies.
Amid this positive outlook, Elon Musk of Tesla has urged the U.S. to establish a strategic reserve for BTC, expressing concerns regarding the nation’s $36 trillion debt.
Recognition of Bitcoin as “digital gold” by the U.S. Treasury
Validating this discussion, the U.S. Treasury Department has formally acknowledged Bitcoin as “digital gold,” emphasizing its growing significance as a value reserve.
In a recent publication, the Treasury mentioned,
“The primary function of Bitcoin appears to be a store of value, also known as ‘digital gold’, within a decentralized finance (DeFi) environment.”
The confirmation by the U.S. Treasury of BTC being a value reserve comparable to gold showcases its remarkable surge, with its market cap escalating from $6.4 billion in 2015 to an impressive $1.3 trillion by 2024.
This rapid growth underlines the escalating interest in DeFi and digital assets.
President Trump’s Bitcoin approach
Further building on this momentum, U.S. President Donald Trump has put forward Scott Bessent, a pro-Bitcoin advocate, as the nominee for the next Treasury Secretary.
Consequently, Trump’s past commitment to institute a “national strategic Bitcoin reserve” and his audacious forecast that BTC could surpass the $16 trillion market cap of gold indicate a notable shift in the country’s stance towards digital currencies.
In response to Trump’s Bitcoin reserve proposal, Bessent remarked,
“I believe that all options are open with Bitcoin.”
Insights from other executives
Moreover, Federal Reserve Chair Jerome Powell recently drew a parallel between Bitcoin and gold during the DealBook conference.
He articulated,
“It’s similar to gold, but it exists virtually. People aren’t utilizing it as a payment method or a value store. Its volatility is high. It does not compete with the dollar; rather, it’s more of a competitor for gold.”
In a similar vein, ARK Invest CEO Cathie Wood and Dennis Porter also chimed in, stating,
“The U.S. Treasury has just declared that bitcoin is the digital equivalent of gold, yet some individuals still view $100,000 Bitcoin as too costly. We are set to soar to greater heights.”
Bitcoin’s recent price movement
Meanwhile, BTC has witnessed a 0.67% decline in the past 24 hours, with its current value pegged at $98,607.58, as reported by CoinMarketCap.
Nonetheless, analysts anticipate that the swift movement may slow down post Trump’s inauguration on the 20th of January 2025.
The future path for Bitcoin is uncertain as it navigates upcoming decisions – whether it will uphold its positive trajectory or encounter a negative turn.